KUALA LUMPUR, Oct 6 — Public Accounts Committee (PAC) chairman Wong Kah Woh today raised concerns over the federal government's loan interest payments.
Wong said of its total revenue collected, 16.3 per cent went towards loan interest payments.
"In other words, for every RM1 collected, 16 sen will be used to service loan interests,” Wong told reporters during a press conference at the Parliament building here today.
This was one of PAC’s concerns highlighted in the Auditor-General’s report (LKAN) on the financial statements of the federal government, state governments and state agencies for the year 2021 that was tabled in Dewan Rakyat earlier today.
Wong also said the PAC is concerned with the federal government’s increasing debt, with debt in 2021 amounting to RM979.814 billion, an increase from RM879.56 billion in 2020 — 63.4 per cent of the gross domestic product (GDP).
He said although the Auditor-General’s Certificate was issued without reprimand, a few matters require the government’s attention.
Wong said these included the payment of matured loans using new loans and the reduction of development expenditure.
“In 2021, the government made gross loans amounting to RM217.201 billion, and 52.4 per cent or RM113.674 billion was used for the principal payment of matured loans.
“So what we can see here is, from the RM217.201 billion gross loans, only 28.7 per cent or RM62.317 billion was used for the purpose of Development Fund.
“So earlier we spoke about RM62.317 billion transferred to the Development Fund, out of this number only RM40.994 billion was used for this purpose,” said Wong.
He stressed that there was a slight decrease in percentage compared to 2020 where RM37.530 billion or 77.3 per cent was used for the Development Fund.
Auditor-General Datuk Seri Nik Azman Nik Abdul Majid, who was also present at the press conference, said the increase in federal debt to RM979.814 billion was due to the RM217.201 billion gross loans.
“Of course, if we look at the numbers from before, these loans were always made to finance the Development Fund.
“It is just that now, this year (2021) and the year before (2020), Covid-19 happened, and part of that fund was used to boost the economy and aid companies that were affected by Covid-19.
“We understand that, but we are worried — the rise in debt cannot continue and it means that this should be a short-term measure.
“Our view is that the government must take steps to remedy this matter so that it will be more manageable,” he said.
Nik Azman added that due to accumulated interest payments, for every RM1 revenue that is collected, 16 sen is used to pay interest payments.
“This cannot continue, although we understand this is temporary, so our job as auditors is to increase the pressure on the matter,” he said.
